Index – Economy – Everyone is talking on the phone, the news of the 5 percent VAT is already holding back the new real estate market



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Construction planners reacted with lightning speed to Prime Minister Viktor Orbán’s announcement on Wednesday night to cut the housing tax to 5 percent. As it turned out from the quick morning recap of ÉVOSZ-MAKÉSZ’s Installed and Environmentally Conscious Technology Department among its members, they began calling construction contractors almost immediately, asking potential contractors to find out the details of the new tax rules. to the home, or

Contractors have already been asked from the outset to terminate their ongoing contracts and then proceed under the new preferential rules.

The profession is primarily excited about when and at what stage of completion the discount rate will be available, as there have already been requests from clients to halt until it is clear whether it will be applicable to ongoing construction projects.

That is, the first experience shows that one eye of the profession is crying, the other laughing. The initiative presented by Katalin Novák comes to the profession at a time when demand was increasing with the second wave of the epidemic. As stated in József Kárpáti’s announcement, the department president stated:

People would shift from paneling and condo sales to smaller family homes because of the experience of the spring quarantine, and in part because of fear of the economic downturn.

This is because people try to preserve the real value of their money by investing in real estate.

Construction companies saw a 50 percent decline in lightweight structures, especially in the smaller and cheaper segments, in August, but the order book for premium buildings remained stable. In September, partly for seasonal reasons, demand picked up in all segments, but by early October, companies were already surprised by the magnitude. There is a demand mainly for smaller houses of 51 square meters, where the garden is also small, “it is expected that the mower does not need to use an extension cord.

The president mentioned Helvécia as a concrete example, where 48,660 square meters of land were developed a month ago. Up to two 51-square-meter houses can be built on them, which customers can take for just 24-26 million in just two days, despite the fact that these prices were calculated by the contractors with 27 percent VAT.

From a professional point of view, companies are primarily interested in whether the reduced tax rate will apply to all apartments under 300 square meters, or whether the decision maker is planning some kind of restriction, as if only will apply to first-time home buyers.

Also, based on the experience of previous VAT reductions, the department expects that

As a result, the price of building materials will rise again, as will wages, but they say this could lead to a 1-2 percent increase in construction fees.

They are also confident that customers will spend more on building energy efficient and environmentally conscious homes. They also called for a controlled expectation of an environmentally conscious, energy-saving, low-carbon and green footprint in exchange for subsidies for various housing projects and 5 percent VAT reduction. For this, it is proposed to create a model house and a network of consultants, who will also guide clients between the different technological solutions, the available energy saving opportunities and the legal requirements.

According to the proposal of the light section of ÉVOSZ, it could even be an energy consulting network, whose employee should already be used during planning, and at the time of delivery would check. And wages could be partly state and construction costs, but should be results-oriented, they emphasized.



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